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Construction Employment Shows Signs of Stabilizing

U.S. construction employment edged closer to stabilization in June, as half of the states added construction jobs or saw no change from May, The Associated General Contractors (AGC) of America reports in an analysis of federal employment data. Compared with June 2009, construction employment rose in six states, the largest number of states to post year-over-year increases since October 2008.

“It is encouraging to see some states adding construction jobs and the declines in others getting less severe,” Ken Simonson, AGC of America's chief economist, said. “But there's little room to celebrate with overall construction employment at a 14-year low and demand for most construction services still weak.”

Simonson said the abundance of workers and firms eager to work, combined with relatively low materials costs, makes construction services more affordable than they have been in years. He noted the Producer Price Index for construction dropped 0.9 percent in June.

“In a few months, however, many companies are likely to have closed their doors, and materials costs will be rising again,” Simonson said.

AGC of America officials noted that projects funded with federal stimulus money have added to the construction-job tally in many states. They warned, however, that the money soon will run out.